The Dangers Behind "Do-It-Yourself" Tax Services
More and more online tax preparation and filing software companies, or “Do-It-Yourself” taxes, are coming under fire for their lack of security protocols. Specifically, these companies are being held accountable for giving away sensitive and personal financial information to third parties. In 2023, tens of millions of Americans’ personal information was shared without their consent including people’s filing status, adjusted gross income, and the size of their tax refunds. The accused include some of the biggest industry giants – not to name names, but they are well-known organizations that show up in a quick “easy online taxes” Google search.
Big corporations have a success-in-numbers strategy, allowing them to cut corners and take advantage of people who are interested in the “easy way” or the least expensive method. On the contrary, boutique tax firms are held to higher standards and ethical practices. For example, I am required to take four hours of ethics training each year. A large portion of the exams that I’ve taken for both of my licenses focused on the ethics and security and yes, the sanctity of the client’s data. Sharing personal data can warrant legal consequences ranging from large fines to prison sentences. Since these online tax companies are being charged at the business level, rather than the CPAs and EAs being held accountable individually, these organizations are not required to adhere to the same ethics that you would find at a smaller tax firm.
Safety and security of our client’s sensitive data is paramount at Wildalea. We have a specific cyber security policy that outlines how to treat client data, only work with vendors who have strict data encryption policies, and retain annual cyber insurance to protect our clients in the event of a breach. We strongly encourage clients not to email sensitive information and if they do by accident, our team is trained not to open it.
It goes further than that though. Wildalea has a strict confidentiality policy. We do not share client names, situations, or stories with other clients, partners, and beyond. All your data, considered technically “sensitive” or not, is kept safe at Wildalea.
The type of privacy, security, and personalization is unique and not something you can find at a corporation. Wildalea is a full-service provider of tax strategy and strategic tax preparation to make sure that you are only paying your fair share of taxes. It’s our goal to remove surprises, communicate effectively and minimize your tax bill within the clear lines of the tax code. Keeping you educated, informed and compliant.
